Deccan Cements Stock Research

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Deccan Cements Detail

Deccan Cements is in portfolio of Ricky Kirpalani and Haresh Keswani . He is one of the top investors in India. The company belongs to Cement sector.

As per the Company website it is one of the major Cement Company operating in South India. The Company has cement capacity of 2.3 TPA (Bhavanipuram plant). The Company has own Limestone mine. Limestone is one major raw material for Cement sector.

Below are different type of Cement manufactured by the Company

  • OPC – Ordinary Portland Cement
  • PPC – Portland Pozzolana Cement
  • PSC – Portland Slag Cement
  • Special Cements
    • High Alumina Cement
    • Sulphate resistant Cement
    • Oil well Cement
    • Rapid Hardening Cement
    • 53 S Grade Cement – For Railways concrete Sleepers

The Company also has power division to cater power needs of the plant. It has thermal, hydel and Wind power. The Company has head office in Hyderabad and the plant is located in Bhavanipuram Telengana.

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I have shared long term price performance chart of the Company below.As per Dow theory of technical analysis price performance over a period of time reflects Company state.

Deccan Cements Stock Performance

The Company has given 35 times return in last 20 years or two decades. If you closely look at above graph you can see years of consolidation and then jump in prices. Typically it takes 5 to 6 years of consolidation after each jump. The period can be divided into 1999 to 2007 and then 2008 to 2014.

The dividend yield at current market price is more than .5%. Investors have made money in this counter. It does not have negative performance for brief period of time.

Deccan Cements My Opinion

Deccan Cements is a Cement Company. Cement is good sector. If you look at most cement sector stocks they have given positive returns to investors. The cement sector story is still intact as India will have construction going on for decades be it residential or commercial.

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Majority of construction still is in metro cities and around it. There are vast area of land be it tier 2 or tier 3 cities where construction is still pending. Also infrastructure growth will be required across country to support the Economic growth be it road or other similar structure.

I am bullish on this sector. I have stock from this sector in my portfolio. You should evaluate stocks from the sector before making a decision. There are good number of Companies operating in this space. They are divided into Cement major and Cement minor. That is sector has big companies as well as small ones in the sector.

In case you are interested then you can track the company by adding it to your stock watch list. That way you can keep close eye on the Company.

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